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The NIST announced that Keccak would be the new SHA-3 hash algorithm on October 2, 2012 and will be used to provide security to any application which requires hashing, pseudo-random number generation, and integrity checking. Keccak is the new Standard Hash Algorithm (SHA-3) to complement the existing hash standard SHA-2. After five years of tough competition hash function has been selected.SHA-3, a subset of the cryptographic primitive family Keccak is a cryptographic hash function designed by Guido Bertoni.SHA core is composed of the Data path and the Controller, the Controller is implemented using Finite State Machines. The finite state machines responsible for input and output are almost identical for all hash function candidates.Keccak is based on four basic logic operations: xor, and, not and rotate. We are improving the performance of SHA-3 by reducing the area as compare to previously design SHA-3 algorithm.